Chinese Police Detained Billionaire Zhao Dong, Major Investor Bitfinex and Binance

Kataryna Kovtun July 2, 2020


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In China, the CEO of the RenrenBit cryptocurrency company, billionaire Zhao Dong, was detained. This happened on June 24th. Hangzhou law enforcement officers detained Dong for the first time, said Matthew Graham, head of Sino Global Capital blockchain startup.

Later, information appeared in the local edition of ChainNews. The likely reason for the detention is called a suspicion of concealing the proceeds of crime.

What awaits the company of Zhao Dong?

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RenrenBit marketing director Jay Chen emphasized that the company continues to operate as standard. The detention is related to Zhao Dong’s third-party business and does not affect RenrenBit’s core structures. According to one version, the billionaire returned to China from Tokyo in June and agreed to cooperate with the investigation when he learned about the ongoing investigation regarding money laundering through over-the-counter cryptocurrency platforms.

RenrenBit serves over-the-counter trading in the Chinese market. Zhao Dong is a well-known representative of the crypto industry in China. He is also an investor in the Bitfinex crypto exchange and the founder of the investment company DFund.

If rumors of detention are confirmed, Dong’s possible arrest is “really important,” Graham emphasized. He compared the detention of the CEO of RenrenBit with the hypothetical arrest of one of the Winklevoss brothers. The Winklevoss brothers are the first billionaires in the world to make their fortunes on bitcoin. If you do not take into account the creator of Bitcoin, hiding under the pseudonym Satoshi Nakamoto.

Recall, according to the financial report of RenrenBit for 2019, the company received, including $ 600,000 in net profit with $ 2.3 million in revenue. As of December 31, 2019, about $ 168 million of client funds were in her wallets. Dong itself was one of the main sources of information about the IEO Bitfinex Bitcoin exchange.

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